The P3 Federal Conference

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|PROGRAM

IMPROVING INFRASTRUCTURE THROUGH PUBLIC-PRIVATE PARTNERSHIPS

DOWNLOAD OUR 2017 EVENT GUIDE HEREWith keynotes, case studies, panels, workshops, and diverse networking opportunities, Conference attendees will deepen their understanding on the key principles behind P3s and other alternative delivery methods, and the role they can play in delivering essential transportation, health, defense, social, and water infrastructure projects.

The conference agenda has been designed to help you plan and procure successful P3 initiatives, understand best practices in selecting and negotiating with prospective partners, and take steps to ensure project success.

Over 80 leading practitioners will present their firsthand observations of P3 projects of all sizes from around the country, and detail the P3 arrangements employed by agencies to develop, maintain, and repair critical infrastructure systems.

2017 Speakers Include:

Daniel Mathews, Commissioner, U.S. General Services Administration's (GSA) Public Building Services

As PBS Commissioner, Mr. Mathews manages the nationwide asset management, design, construction, leasing, building management and disposal of approximately 371 million square feet of government-owned and leased space across the U.S. and six territories. Commissioner Mathews will join us for Thursday Breakfast Panel inviting key current and former GSA officials and House and Senate staff committee members who will share their thoughts on current administrative and legislative proposals to adapt P3s for the Federal real estate portfolio. Speakers, including GSA’s new Public Buildings Commissioner, will share their views on the role of GSA, real estate financing, and what is likely to change in 2018.

Pete K. Rahn, Maryland Department of Transportation Maryland Department of Transportation (MDOT) Secretary Pete K. Rahn will join John Porcari, former United States Deputy Secretary of Transportation, and current president of U.S. advisory services at WSP to discuss Maryland's recently announced plans to add four new lanes to I-270, the Capital Beltway (I-495), and the Baltimore-Washington Parkway (MD 295). The $9 billion Traffic Relief Plan is the largest Highway P3 in North America and these three major state highways will reduce congestion for millions and mark the beginning of a transformative effort to improve the traffic conditions on some of the state's most traveled roads and highways for years to come. Secretary Rahn will discuss his state's approach to P3 as Maryland solicits private developers to design, build, finance, operate, and maintain new lanes on I-495 between the American Legion Bridge and the Woodrow Wilson Bridge and on I-270 between I-495 and I-70.s.

FEATURED SESSIONS

The 2017 Agenda is Now Online. Sessions in this year's program will include:

To P3 or Not To P3: How To Determine the Appropriate Project Delivery ModelHow are US public agencies determining the optimal delivery model for their projects? Not every project can or should be delivered as a P3. Before initiating procurement for a P3 project, public agencies typically undertake a business case analysis to determine whether a P3 is likely to yield higher public benefit than a more traditional procurement method. Presenters from leading public agencies will discuss their pre-procurement methods and explore the applicability of P3 methods to infrastructure projects currently in the pipeline.

A Template for Instilling Confidence in the Procurement Process To attract P3 consortium partners (developers, investors, contractors and service professionals), the public sector must instill confidence in the procurement process and house the necessary expertise to support a pipeline of P3 projects. This sessions explores how to develop a dedicated institutional framework designed to manage and guide programs and projects.

How States and Cities Can Expand their Infrastructure Delivery in Light of a Reduced Federal RoleWhat are the options for municipalities and states facing critical infrastructure needs? This session will discuss why you can't necessarily wait for the Federal government on local infrastructure challenges and what are the best ways to move along.

P3s for Rural Areas and Small Cities Can the model work for your community? A panel of practitioners and industry experts will explore how P3s can create opportunities in rural areas and small cities. This discussion will emphasize best practices and lessons learned from alternative project delivery at the local level. Local business leaders and municipal officials will learn how to develop a strategy for their communities: including specific steps to take advantage of P3 best practices in public infrastructure procurement.

Financing Solutions Offered In P3s This session brings together the perspectives of infrastructure banks, state funds, capital market experts, and federal agencies to discuss a range of familiar and lesser known programs available to communities evaluating project investment. Panelists will share insight on the risks and advantages of different options, while considering key issues related to the application process; project selection; leveraging resources; credit analysis; determining leverage; aggregating smaller projects; the role of public private partnerships; hybrid funding; implementation; and proper stakeholder coordination. A key objective in this session is to explore ways that these programs can help accelerate and foster increased investment in critical infrastructure in the U.S.

New Strategies for Deferred O&M P3s can include long-term operations and maintenance obligations that the private sector is responsible for delivering. O&M is mounting challenge faced by communities across the country, and many public sector sponsors have stated that these operations and maintenance services are one of the biggest reasons for considering a P3. This session will discuss how the inclusion of these key deliverables in a P3 help to maintain infrastructure and improve service quality.

Using P3 to Transform Energy Management In the context of an increasing focus on energy cost, volatility, carbon impact and security of supply, facility managers are transforming their energy systems by deploying innovative technical solutions and contracting approaches. These approaches are modernizing aging systems to meet resilience and sustainability objectives, while reducing costs and releasing value. This session discusses examples of good practice and discuss the actions and approaches cities and agencies can take to improve their energy outcomes through P3 type models, drawing upon experts from both the construction and P3 contract management realms.

The Use of P3s in Resiliency Projects Resilience, sustainability, and infrastructure are inextricably linked. Resilience is moving to the top of many cities and regions agendas. Resilience projects encompass a diverse range of infrastructure related matters, from flood defense to drought resiliency, and municipal, state, and federal stakeholders. As the infrastructure need is becoming increasingly apparent, and as federal funds are ever more constrained, P3 is beginning to emerge as one possible way forward for these key projects. This section will draw on the lessons learned from a number of recent, high profile resilience projects to identify key issues, approaches and themes, which will be relevant to those contemplating similar projects, as well as those involved in structuring complex water related projects. Topics will include an overview of resilience infrastructure, and key drivers for action while considering major challenges faced by resilience projects, as well as the potential roles and limitations of P3 in resilience projects (value proposition, risk, pricing, design innovation etc.). The panel brings a rich perspective from federal, state, city, and private sector leaders in resilience infrastructure.

Soup to Nuts: Delivering Your Project This session will feature in-depth case studies of projects are being delivered using a variety of approaches leveraging available public funds. Panelists will discuss their experiences with planning, procuring and administering contracts. Audience members will learn specific elements of the P3 structures currently in use, and how to evaluate the merits and risks of these structures against other types of P3s and traditional non-P3 development.

Increasing Private Investment in US Infrastructure: Opportunities to Streamline and Expedite the Environmental Review ProcessThe permitting process has become a cumbersome challenge which causes unnecessary delays and project backlogs. In this session public and industry infrastructure experts provide insight into how current legislative proposals could help streamline the environmental review process while still maintaining high standards and low environmental impact.

Potential Federal Incentives for States to Adopt the P3 ModelHow can the Federal government support the growth of P3s at the state and municipality level? This session will provide a discussion on how to approach this challenging as the Administration seeks to empower states to incentivize the use of private capital for US infrastructure projects.

Ways to Reform Federal Budget Scoring RulesJoin industry experts for a lively conversation on the impact that current rules have on procurement opportunities, their history and possible solutions for helping the Federal government better maintain and employ its real property portfolio.

Expanding the Federal Government’s Financing Tools to Encourage the Use of Private Capital in US Infrastructure ProjectsIndustry and public agency representatives outline the challenges and offer solutions and practical advice for policy suggestions as a means to increase private investment and promote infrastructure development.Is P3 The Path To Long-Term Viability? Budget cuts, rising cost pressure and growing deferred maintenance have combined to threaten the sustainability of major infrastructure in the U.S. These pressures are prompting agencies to explore innovative service and asset delivery models to help reduce costs, better maintain facilities and create new tools to finance and construct new and modernized facilities. A panel will discuss the underlying facility and operating pressures, models that have been employed to address them, and discuss which types P3 projects are likely to occur in the future.

P3s: Intermodality and Trade A close look of how existing infrastructure gaps are impacting trade competitiveness across the United States. In this panel specific attention will be made to the applications of P3's for ports and harbors, rails, and in the last mile.

Contract Management and Making the Partnership Work When a P3 contract is signed with a private party, the work of the partnership begins, and both private and public parties have to live up to their responsibilities. Contracts attempt to identify and plan for the potential events that could occur during the life of the P3, but can rarely imagine all events into the future. This module will present the fundamentals and challenges of contract management, methods to streamline documentation. examine P3 contract requirements, discuss enforcement policies, as well as techniques for amending, renegotiating or terminating contracts.

Winning P3 Formulas for Water Infrastructure Projects P3s are moving up the agenda in the North American water market but the definition of what a P3 is can be mixed and confusing. This session navigates through the confusion by outlining the different P3 models and discussing the key components of successful water P3s underway in the U.S. A panel of industry participants will discuss P3s in the context of the US water infrastructure market and examine projects that illustrate successful P3 contracts.

P3 Risk Balance and Expectation ManagementOne of the hallmarks of a successful P3 project is the sharing of risk between the public and private sectors. Where can the balance be stricken and how can you be sure you have identified all the project risk categories for which transfer is an appropriate deal point? This session will discuss how public and private sector participants can work together to establish expectations and strike a fair balance for risk transfer between them on P3 jobs. The panel will address how to manage risk transfer in design and construction costs, operational and maintenance risk, and political risk can impact the value for money analysis. We will discuss risk allocation between the private and public sectors, as well as among the various members of private concessionaire teams. Finally, once the appropriate risk categories have been identified, we will discuss the different vehicles available to implementing risk transfer.

Additional Topics in the 2017 Program: Planning And Political Will - How to win political and local support with successful communication plans.

Attracting the Right Partner: Procuring P3s - A look at best practices in selecting and negotiating with prospective partners and keys to managing public-private partnerships.

Just what is a P3 Today? - Does a long term O&M contract or a DBO qualify as a P3? What are financing approaches? Does it even have to include financing?

Asset Recycling - Rethinking The Asset Portfolio - Is asset recycling an effective method for the public sector to fund new infrastructure. What are the costs and considerations that accompany government leasing revenue generating assets. Does infrastructure ownership or investment better serve the public interest?

Decaying Federal Projects and How States Can Pick Them Up - We examine Federal projects that States need done. What are the solutions for suspended or stagnating water and transportation projects whose completion are critical to communities.

The Role and Responsibility of the Private Investor - A candid discussion with infrastructure investment funds and capital allocators on the public-private partnerships.

Low Hanging Fruit? P3's and Specific Opportunities for Energy Resiliency - A closer look energy management and community choice aggregation as important new trends and potential resiliency measures for municipalities.

A comprehensive list of best practices and lessons learned will be presented through a series of workshops in the program. With an emphasis on what managers should consider when looking at P3 opportunities, including:

Pre-Award Discussion Topics:

Assessing merits, risks, and the feasibility of a P3 project

System and facility considerations: identifying what works as P3 and what does not

Custom structures and options for small communities seeking partnerships

Understanding credit impacts P3s can have on an institution’s rating and debt capacity

Political considerations for developing and implementing P3 projects

Teamwork and Collaboration Topics:

How to score, select, and negotiate with prospective partners

How to set service standards and define performance metrics

The importance of early engagement with private and public stakeholders

Integration tools and techniques to enhance collaboration

Owner roles and responsibilities in executing a P3

Risk balance and expectation management

Contract administration and analysis

Advanced Project Delivery Topics:

Risk identification, mitigation, and tradeoff strategies

Asset monetization of non-core infrastructure assets using P3s

Financing solutions and value propositions under the P3 Model

The influence of design within the P3 process

Value creation from transferring operations and maintenance

Latest innovations and life-cycle efficiencies in P3 delivery

Additional topics to be covered at the P3 Federal Conference:

Policy workshops on public-private partnerships

Sessions meant specifically for smaller projects in the $5 to $25 million range.

Consolidation and other options available to smaller communities.

Strategies on bringing community stakeholders together to move P3 projects forward.

Real project P3 experience from the public sector on what worked and what didn't.

In-depth examinations of recent major P3s.

Project Turnover: What happens the end of project? Reversion to owners and managing the transition into the public domain.

ROUNDTABLES

The P3 Federal Conference will be hosting roundtable conversations on 16 P3 topics. Discussions will last approximately 25 minutes and are meant to be open and candid exchanges where participants can ask questions and share experiences.

Facilitators will guide discussions by presenting case studies, targeted issues, and topics shaping the P3 landscape. During the 2 hour session new discussions will begin every half hour and participants are invited to all table topics of interest.

Roundtable topics for 2017 will include:

Table 1: P3 Risk Balance and Expectation ManagementOne of the hallmarks of a successful P3 project is the sharing of risk between the public and private sectors. Each sector would prefer to reduce their risk on the project, but there are serious cost impacts when the other sector absorbs more risk. Where can the balance be stricken and how can you be sure you have identified all the project risk categories for which transfer is an appropriate deal point? We will look at how public and private sector participants can work together to establish expectations and strike a fair balance for risk transfer between them on P3 jobs. The table will address how risk transfer in design and construction costs, operation and maintenance, and politics can impact the value for money analysis. We will consider risk allocation between the private and public sectors, as well as amongst the various members of the private concessionaire team. Finally, once the appropriate risk categories have been identified, we will discuss the different vehicles available to implementing risk transfer.

Table 2: P3 or Not to P3: Identifying the Appropriate Project Delivery ModeHow are US public agencies determining the optimal delivery model for their projects? Not every project can or should be delivered as a P3. Before initiating procurement for a P3 project, public agencies typically undertake a business case analysis to determine whether a P3 is likely to yield a higher public benefit than a more traditional procurement method. As the US P3 industry develops, public agencies have had to adapt international evaluation methods to fit US market characteristics and regulatory requirements. We will discuss pre-procurement methods and consider the applicability of P3 methods to major categories of infrastructure projects currently in the pipeline.

Table 3: Using Tax-Exempt Bonds in P3For years tax-exempt financing has been the preferred means to finance public facilities. This roundtable will address the issues involved in using tax-exempt debt in public-private partnerships, and compare and contrast structures involving tax exempt debt vs. conventional debt and equity. The conversation will also examine the impacts of the financing structure on project cost, project delivery, and long term operations and maintenance.

Table 4: From Idea to Implementation: The Role of a Project Champion in Building Internal PartnershipsBetween the first idea for a P3 project and the eventual ribbon-cutting lie many obstacles. P3 projects are still new and different to many people. They require new processes, new ways of thinking, new legal and financial models, and new risks. A project champion is essential to navigate those obstacles and build a team and process that will maximize the chances for success. The project champion must understand enough about both the traditional process for water development and the new opportunities offered by the P3 model to bridge those worlds and to help projects adapt and remain flexible through the design and implementation phases. This roundtable is designed to empower potential project champions to build the internal partnerships needed to take a project from idea stage to implementation.

Table 5: Community Engagement Is Not an AfterthoughtCritical to the success of any P3 is a strong commitment to stakeholder engagement, communication, and transparency. Including stakeholders early in the public planning process allows for community engagement and an opportunity to facilitate a successful P3 program based on public support and involvement. Here we examine how both the public and private partners can approach the dialogue with the ratepayers, business groups, and community shareholders for the best chance at a win-win-win solution for the public partners, private partners, and the community.

Table 6: How to Maximize the Procurement ProcessTo attract P3 consortium partners (developers, investors, contractors, and service professionals), the public sector must instill confidence in the procurement process and house the necessary expertise to support a pipeline of P3 projects. This table will consider the various methods that agencies can implement to use this initial phase of the P3 process to their advantage—not only to generate interest from the private entities in their project but also minimize and avoid any negative issues associated therewith.

Table 7: Want to Seriously Consider a Water P3? Better Understand What Makes This Market Sector TickWater sector owners “hear the P3 buzz” created by other sectors and are looking for useful information and guidance. Unfortunately, P3 interest in the water sector is often blindsided from the depth and breadth of ongoing narrative in the larger P3 community and by precedents in other market sectors and geographies. The path forward is simply the water sector needs to create and lead the water sector P3 narrative. The water sector has some unique features that need to be fully understood, and these features are key to the best practices for the evaluation, procurement, contracting, and implementation of a water P3. This discussion will focus on these water sector features and why they are so important.

Table 8: Off Balance Sheet But on CreditAmong the many touted benefits of potential P3 projects is the ability to keep debt off the balance sheet. But just because it is off the balance sheet, does this mean rating agencies will consider it to be off credit as well? Chat with a ratings analyst who will discuss her approach to evaluating a P3 project’s impact on credit rating.

Table 9: O&M Risk Issues in P3 Concessions This table will focus on the last costs of a P3 concession: the O&M phase and its insurance line item. We will discuss how failure to anticipate insurable coverage issues and address insurance related challenges can put the O&M concession phase at unanticipated risk. Issues such as the impact of optimism bias in anticipating future insurance costs, the insurance downsides of deferred maintenance, and the revealed coverage gaps when being jointly and severally liable with the public offtaker will all be considered in this discussion.

Table 10: Cost of Finance – Does it Really Matter? This roundtable will focus on understanding the cost of financing. While some disregard P3s outright arguing that tax exempt financing can be cheaper, there are recent examples that have demonstrated otherwise. In this discussion, close consideration will be made to when the cost of finance is relevant and the role of other key factors that impact the value of money in a P3.

Table 11: Defining and Maximizing Value in a Public-Private PartnershipThe deal structures of today are multivariable equations, not off-the-shelf deal structures that are bid on spec and valued exclusively by price. As such, the most successful projects are implemented when an institution defines project values, creates framework that prioritizes and normalizes variables, and drives competition by providing developers with sufficient information and flexibility to be innovative. This roundtable is designed to empower institutions to become the strongest owners possible by defining project requirements, weighing delivery options against risk, and selecting a development structure that best fits their goals prior to soliciting private partners.

Table 12: Making Partnerships Work When a P3 contract is signed with a private party, the work of the partnership begins, and both private and public parties have to live up to their responsibilities. Contracts attempt to identify and plan for the potential events that could occur during the life of the P3, but they can rarely imagine all events into the future. This table will present the fundamentals of and challenges to contract management; demonstrate methods for streamlining documentation; examine P3 contract requirements; discuss enforcement policies; and provide techniques for amending, renegotiating, or terminating contracts.

Table 13: PRE-RPF Done Right: Best Practices for P3 Procurement SuccessAre you considering a P3 delivery but not sure where/how to start? Concerned about attracting private sector interest? This roundtable will address pre-RFP activities for a municipal entity to consider, a procurement road map to then follow, and finally the individual steps to prepare and implement a P3 from procurement through award, commercial/financial close, delivery, and operations. Table 14: Winning P3 Formulas for Infrastructure ProjectsP3s are moving up the agenda in the North American market but the definition of what a P3 is can be variable and confusing. This roundtable discussion will navigate through the confusion by outlining the different P3 models and discussing the key components and attributes of successful P3s currently underway in the U.S. With each model having its own risk/return profile, we will discuss and review the risk/reward continuum in each model and examine examples of projects that illustrate successful P3 contracts.

Table 15: Value Creation from Transferring Operations & Maintenance RiskOne of the biggest differences in a P3 delivery is the long-term operations and maintenance obligations the private sector is responsible for delivering. Many public sector sponsors have stated that operations and maintenance services as one of the biggest reasons for considering a P3. Join a discussion on the importance of operations in a P3 and how the right structure may improve service quality.

Table 16: Outsourcing Arrangements - How Can Best Practice Asset Management Support P3? Over the years many different outsourcing contracts have been placed all aiming to deliver value for the asset owner. Was the outcome of these contracts always what the asset owner intended? Could building the outsourcing arrangements based on the sound principals of asset management help improve the operation of these contracts and ensure the outcome is aligned to the asset owners objectives.

EXPO HALL

Expo Hall is where municipalities and agencies and industry can share information about their services and upcoming P3 developments. Attendees will be able to interact in a relaxed social setting as well as meet with some of our presenters, sponsors, and event partners.

The Expo Hall is one of our central meeting points for all attendees during the event. Attendees are encouraged to setup one-on-one, pre-scheduled, or private appointments with participants. Please email Sandra Cole for additional details.

NETWORKING

The two day conference offers numerous ways for attendees to network and connect with each other. The program will offer multiple daily breaks, networking receptions, one-on-one meeting areas and specific events designed for you to meet new industry faces and reconnect with old colleagues.